This 12 page paper answers questions asked by the student. The first part of the paper considers how understanding segmentation may help with know who the target market for a skill resort. This question also consider what the marketing mix is and how it can and is being used. The second part of the paper shows the student how to draw up a profit and loss account and a balance sheet. The third part consider break even point on the projected figures and includes a graph with fixed, variable and total costs shown and income plotted to demonstrate break even point. The last part of the paper looks at a business proposal, calculated the NPV of two options and demonstrates how to calculate the internal rate of return, before making a recommendation. The bibliography cites 5 sources.
Name of Research Paper File: TS14_TEquet13.rtf
Unformatted Sample Text from the Research Paper:
and future customer profiles. Segmentation is a method of dividing up the market this can be undertaken in several ways, all of which will be useful in helping Adam understand
who his customers are and what they want as well as who he should market to. Segmentation may be undertaken broadly in terms of the services or goods offered,
in this case Adam is in the ski market. However, this can be defined more narrowly, as his is a small operator. Understanding this will help Adam realise how he
should compete, as a small company is unlikely to succeed in a head on battle with a much larger company (Hooley et al, 2000). This is then likely to lead
to specialisation, either developing a niche market, or a higher level of differentiation. This can also help to highlight the segment in which the company could operate. This market may
also be one that certain types of consumers may find appealing. As such segmentation can also take place in terms of the target audience. The two main methods are demographics
and psychographics. The use of demographics looks at the physical characteristics of the market and can be used to break down the
population into smaller more similar groups. Demographics are objective measures such as age gender, class and income (Kotler, 2003). The way in which a consumer may be identified will range
from general geographical areas and income brackets, to educational levels, social class, race or ethnic background, occupation and even the type of family that they have, those with young children,
couple and empty nesters. The different products bought may represent these different demographics, and in the ski market the market may be defined in terms of higher income, due to